The company is keeping its interim dividend at one cent. While LHN has no formal dividend policy, Tang and Mo expect the company to maintain a payout ratio of 40% over the next two years, implying a yield of 5-6%.
LHN's 1HFY2026 earnings came in below expectations but given the defensive, recurring nature of its income, UOB Kay Hian analysts Tang Kai Jie and Heidi Mo of UOB Kay Hian have maintained their "buy" call and 71 cents target price.
For the half year ended March, LHN reported revenue of $60.9 million and PATMI of $16.8 million, which were just 44% and 38% of what they forecasted.
